Introduction 39
Exhibit 1.7 Interplay between the firm’s macroeconomic environment and the internal ‘Capital Market’
Pattern of share
ownership and
agency relationship
Owner–agent–
lender goals
Owner-agent Monitoring
and valuation
methods
External Capital Market
Owner–agent
influence on
management
REFERENCES AND SUGGESTED READING
Anthony, Robert N (1960). ‘The Trouble with Profit Maximization’, Harvard Business Review, Nov–Dec.
Barclay, Michael and C G Holderness (1989). ‘Private Benefits of Control of Public Corporations’, Journal of Financial
Economics, Vol. 25.